CIBC Price Target Raised to $110 by National Bank, Maintaining Sector Perform Rating

National Bank raised its CIBC price target to $110 and maintained a sector perform rating. CIBC is a Canada-based financial institution with over 14 million clients globally, offering services through four strategic business units: Canadian Personal and Business Banking, Canadian Commercial Banking and Wealth Management, U.S. Commercial Banking and Wealth Management, and Capital Markets and Direct Financial Services.

Title: CIBC Launches Innovative Chequing Account to Deepen Client Relationships

CIBC (Canadian Imperial Bank of Commerce) has announced a new and innovative approach to chequing accounts, set to launch this fall. The CIBC Smart Account is designed to recognize and reward clients as they deepen their relationship with the bank, offering fee rebates, unlimited everyday banking transactions, and additional features.

The new account will feature three distinct tiers based on a client's average monthly balance of eligible deposits and investments with CIBC. The tiers are as follows:
- Tier 1 (up to $39,999.99): Clients will receive a monthly account fee rebate if they maintain a minimum end-of-day balance of $4,000 each day for that month.
- Tier 2 ($40,000 - $99,999.99): Clients will have their monthly fee rebated and will be eligible for a credit card annual fee rebate of up to $50.
- Tier 3 ($100,000+): Clients will benefit from credit card annual fee rebates up to $139, unlimited non-CIBC ATM withdrawal fee rebates worldwide, stop payment fee rebates, and no monthly fee for CIBC Overdraft Protection Service on up to three CIBC Smart Accounts.

Existing CIBC clients will be automatically enrolled in one of the three tiers on a monthly basis, with features and benefits applicable for that month. Clients can view their account tier through their Online Banking or Mobile Banking app, by inquiring at a local banking center, or by calling the CIBC Contact Centre.

In addition to the new chequing account, CIBC will continue to offer no monthly fee account options for youth up to age 24, students, newcomers, Registered Disability Savings Plan beneficiaries, Young Canadians, and now seniors. This move aims to support Canadians at every life stage, reflecting CIBC's commitment to accessible banking.

The new CIBC Smart Account is part of CIBC's broader strategy to recognize client loyalty and grow with their clients. The bank has seen significant growth in its retail client base, with over 600,000 net new clients in Fiscal 2024, and was recently recognized by Forrester as a Customer Obsessed Enterprise.

The implementation of the new account is set to be seamless for existing clients, with personalized communications outlining specific benefits to be sent in the coming weeks.

References
1. [CIBC Launches Innovative Chequing Account to Further Recognize Client Relationships](https://www.newswire.ca/news-releases/cibc-launching-innovative-chequing-account-to-further-recognize-client-relationships-853373072.html)
2. [Canadian Banking Sector Outperformance: Strategic Buy Opportunity](https://www.ainvest.com/news/canadian-banking-sector-outperformance-strategic-buy-opportunity-earnings-strength-macroeconomic-stability-2508/)